The Minister of Trade and Industry, Alan Kwadwo Kyeremanten has disclosed that his Ministry is fighting back to get shares it has sold to Tiberias Company Limited in order to takeover Ayensu Starch Company Limited.
According to The Minister, “we are seeking legal advice on the next line of action to take to restore the Company to Government ownership”.
The decision by The Ministry to buy the share back followed a breach of an agreement on the part of the new company.
In his Parliamentary answer to Member of Parliament (MP) for Awutu-Senya West, George Nenyi Kojo on what steps are being taken to revamp the operations of the Ayensu Starch Factory, The Minister said, “the Government in August 2016 offered 70% of its shares in the Ayensu Starch Company to Tiberias Company Limited, a company affiliated to the Jospong Group.
Tiberias Company accepted and made an initial payment of US$2,269,500.00 representing 51% of its US$4,450,000.00 obligation as the Purchaser, and has made no further payment thereafter. The Company has failed or refused to fulfil its obligations under the Agreement and has defaulted on all other revised payment schedules.
Furthermore, the company has abandoned the factory and left the workers idle and without compensation”.
He stressed that, “in the light of these and other developments, the Ministry through the Transaction Advisers informed the company of its decision to take over the Ayensu Starch Company in a letter dated 20th December, 2018. The Company however, in a letter dated 14th January 2019 indicated its refusal to hand over possession to the Ministry although the Company has abandoned the factory putting the plant and machinery at risk.”
As part of efforts to sustain its operations, the Company entered into a two-year off-taker agreement with Guinness Ghana Brewery Limited (GGBL) to supply 14,000 metric tonnes of industrial starch until June, 2015. Under the agreement, Guinness Ghana Limited provided the company with financial and technical support, he added.
Mr. Kyeremanteng emphasized that, in an anticipation of a smooth takeover by government, the Ministry is negotiating a financial package under the One-District-One-Factory (lDlF) Programme to resuscitate the company to ensure that it achieves its intended purpose of job creation, reducing ruraI-urban migration and producing an important raw material for the food and beverage sectors and other related industries”.
The Ayensu Starch Company Limited (ASCO), was established in 2002 with the capacity to process over 22,000 metric tonnes of cassava starch per annum. To meet its objective, the company assisted various farmer-based organizations within its catchment area to produce cassava by providing them with resources (both financial and technical) to ensure sustainable supply of its raw material needs.
Story by Edzorna Francis Mensah
